RBC sets the record straight on small business myths

From job stability to financing and growth, Canadians hold many misconceptions about starting and running a small business

TORONTO, September 19, 2013 - While an RBC Poll shows
that 88 per cent of Canadians believe small businesses are
vital job creators, many still fall prey to misconceptions,
including the idea that owning a small business provides less
stability and that lending is nonexistent for people who want
to start a small business.

"Because every small business is unique, there is no
one-size-fits all solution to starting and running a small
business," says Kim Ulmer, vice-president, Small Business,
RBC. "Owning a small business can be incredibly rewarding,
but the path isn't always clear."

With Small Business Month around the corner, RBC is setting
the record straight about some of the most prevalent myths
about small business, including:

Myth: For small businesses, growth is always a good
thing.Fact: Growth is almost always a good thing -
as long as it is controlled. Being able to scale up for a
big order or ensure the right cash flow should be paramount
in your growth strategy. Also, some business owners are content
with their size and growth is not a goal - this is okay.

Myth: Small businesses offer little job stability.Fact: While this might have been true once upon a time,
Industry Canada notes that 75 per cent of Canadians are now
working in companies with less than 10 employees. Often these
small businesses offer a more engaged environment where the
employee has a stake in ensuring happy customers and long-term
success. In fact, an RBC survey shows that Canadians are very
willing to support small businesses, with 61 per cent of Canadians
saying they would pay more for a product or service to support
a small business and 83 per cent saying they support small
businesses in their community by doing business with them
or helping to promote them.

Myth: Small businesses can't provide the perks and
benefits that larger organizations can.Fact: Many small businesses are able to offer their
employees more meaningful perks because they don't have to
scale them to hundreds of employees and they can be tailored
to individual personalities. Group benefit plans can be tailored
to meet the unique needs of small businesses For example,
with RBC
Group Advantage, small businesses can customize their
group savings plans, including RRSPs and mortgage relocation
programs.

Myth: Small business owners don't have the resources
for professional support, including accountants, bookkeeper,
lawyers and assistants.Fact: The adage holds true - sometimes you have to
spend money to make money. Small business owners often wait
too long before seeking advice. Professional support can often
help make small businesses more profitable and more sustainable
long term. With a support team, small business owners can
spend more time focusing on their business.

Myth: Small business owners get the freedom to focus
most of their time on their core business.Fact: While this is the goal, it can be difficult for
small business owners to take time away from working 'in'
the business to working 'on' the business. Being smart about
planning and using resources can allow small business owners
to spend more time on core activities.

Myth: Lending is not readily available for small businesses
- especially for new
Canadians.Fact: While it is true that many prospective small
business owners run into challenges when securing funding,
it's often because they haven't been able to make the right
business case or are under-prepared or under-capitalized -
not because the funds are not available. An advisor can provide
the tools and expert guidance to create a compelling business
case and help to determine appropriate sources of financing.

Myth: Small business owners can write off all expenses
(including those in their home).Fact: There are government rules about what can and
can not be written off at tax time. While there are many expenses
that small business owners can claim; it's important to understand
exactly what they are entitled to. For a full list of business
expenses, visit Canada
Revenue Agency business expenses.

About RBC Small Business Banking
Small businesses in Canada want flexible banking choices,
convenient payment options and simple ways to manage their
cash flow. Whether they are starting
a business, managing
growth, or succession
planning, the RBC
Advice Centre can help answer their questions. Free interactive
tools and calculators provide customized information covering
many facets of business
finance and online advice videos are updated regularly
to answer questions that are top of mind with small business
owners. RBC
Group Advantage is a comprehensive program providing employees
with advice from qualified investment specialists and financial
advisors and also offers flexible plans -- including group
RRSPs, group savings and group bank -- as well as a mortgage
relocation program, to help small business owners attract,
retain and motivate productive, long-term employees. With
the guidance of RBC business advisors, small business owners
have access to free, no obligation professional advice about
RBC products and services. For more assistance, please visit
www.rbcadvicecentre.com.